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Biz News Korea(Eng)
Samsung Elec to design and manufacture chips for Tesla cars
- Collected
- 2016.12.09
- Distributed
- 2016.12.12
- Source
- Go Direct
Tesla’s electric sedan Model S
Under the application specific integrated circuit (ASIC) foundry deal, the world’s largest chipmaker will not just be in charge of manufacturing but also designing chips tailored to power Tesla’s smart cars.
Tesla gets core components for its autonomous cars from Israeli auto parts provider Mobileye, but has been looking for different suppliers after a driver was killed in an accident when the car was on a self-driving mode in May this year. The automaker had tried to develop chips on its own but failed, according to sources.
Samsung Electronics has been working on its own automotive chips at its System Large-Scale Integration (LSI) division. A strategic partnership with Tesla would provide a push to its automotive parts business that it relies on as a new growth engine.
As of 1:09 p.m.. on Friday, shares of Samsung Electronics fell 0.73 percent to 1,777,000 won in Seoul trading.
By Kim Dong-eun and Lee Dong-in
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